Over the next few years, we’re going to see huge changes to the way properties are let and managed.
The Renters’ Rights Bill (RRB) is likely to pass this summer and there are a lot of different measures within it, although they won’t all come into force at the same time.
That means you have to be able to stay on top of what’s changing and when, so you can make sure you and your properties remain compliant.
Of course, it is possible for individual landlords to understand the new legislation and put it into practice themselves.
However, many aspects of the upcoming changes will require expert knowledge, and having an experienced managing agent working on your behalf will make transitioning to the new rules much easier.
It will also significantly reduce the likelihood of you falling foul of the new rules – and that’s vital, because the consequences are getting tougher:
- Financial penalties for breaches will increase under the Bill:
- Maximum civil penalties rising to £40,000
- The maximum amount you could be ordered to repay to tenants is doubling from 12 to 24 months’ rent
- Membership of a new Ombudsman will be mandatory for all landlords, making it easier for tenants to report and seek redress against those who fall short of minimum standards
- You and your properties will have to be registered on the new PRS Portal, which will also hold information about any penalties incurred
Work with an agent that operates at the top of the sector
As members of the industry’s leading self-regulating body, Propertymark, our teams are receiving the highest quality support and resources to make sure they remain up to date on the RRB.
Our landlords can also be reassured that we work to a professional code of conduct and all staff undergo regular professional development and training.
Many of our executive team have decades of experience, working alongside leading industry organisations and government departments. For example, our National Property Director, Valerie Bannister:
- Has worked for the company for over 40 years
- Previously served as Lettings Compliance Director for Your Move and our sister company, Reeds Rains
- Held the position of President of ARLA Propertymark and served on the board for many years
- Won the Sunday Times/Times Outstanding Contribution to the Lettings Industry Award
- Was given a Lifetime Achievement Award at the industry Negotiator Awards
Valerie’s knowledge and expertise, particularly around compliance, will be hugely beneficial when it comes to implementing the RRB changes across the network.
While our high street branches are operated by individual franchisees, all administrative resources, systems and processes are fed down from our head office.
That means our landlords can be confident they always comply with the highest legal standards.
Part of the LSL Property Services network
We specialise in estate and letting agency, but we are part of the wider LSL network, which incorporates:
- Financial services for mortgages and insurance products
- A surveying and valuation division – including e.surv, one of the UK’s biggest employers of RICS registered surveyors
- Conveyancing panel management and support services
- A dedicated land and new homes division that provides a complete range of services for house builders, developers and investors
- Asset management businesses that specialise in managing the sale of residential properties on behalf of corporate clients and property investors
This gives all the companies in the group a good understanding of how the RRB will affect the full range of services that landlords rely on to operate a successful property investment business - not just letting and property management.
What parts of the Bill will be most challenging for landlords?
Here are some key areas where it will be a huge benefit having Your Move acting on your behalf:
New tenancy agreement
It will be essential to ensure you give every tenant a legally correct agreement ahead of their tenancy. Although we don’t know the detail of the clauses that the new regulations will prescribe, we do know that it will be an offence to:
- Fail to provide a tenancy agreement (or ’written statement’ of terms) before the tenancy begins
- Give a tenancy agreement with a fixed term – with a penalty of up to £7,000 for breaching this rule
New anti-discrimination and ‘bidding war’ rules
There are already laws around discrimination on the basis of race, gender, religion, etc., but the Bill states that tenants can no longer be refused or rejected because they are in receipt of benefits or have children.
There will also be a ban on encouraging tenants to outcompete each other for a new tenancy, and landlords won’t be able to ask for rent above the advertised price.
As we could see advertising and handling of tenant applications coming under much closer scrutiny, it’s advisable to use a qualified agent to let your property.
Removal of section 21 – the importance of vetting tenants
Losing the ability to give a tenant two months’ notice to leave without having to state a reason has been probably the most contentious measure in the Bill for landlords.
When section 21 is scrapped - which Labour has indicated it wants to do as quickly as possible – landlords will only be able to serve notice via a section 8, stating a specific legal ground.
So, it’s going to be more important than ever to thoroughly vet prospective tenants before granting a tenancy.
Any landlord can use a specialist company to carry out the referencing and credit check processes, but we know how important it is to meet applicants, so you can assess in person what kind of tenant they’re likely to be.
Our lettings specialists have expertise in knowing what questions to ask and being able to spot red flags – e.g. indications that tenants might be deceptive – things that paperwork checks alone aren’t likely to reveal.
New minimum standards for properties in the PRS
The Government has promised that their new Decent Homes Standard will provide clear guidance around new minimum standards for rented properties and impose a strict timeline for fixing serious hazards (under Awaab’s Law).
Although we’re still waiting for details, we know that understanding and putting these new standards into practice could be challenging for individual landlords.
Our specialist property management teams have experience and training in carrying out property inspections, as well as access to a reliable network of local contractors who understand the specific standards required of rental properties.
Likely to take longer to evict a tenant
A lot of Section 8 grounds have been revised, and the notice periods will increase for many of the most common ones, including rent arrears and wanting to sell.
At the same time, the accelerated possession procedure is being scrapped along with Section 21, so every contested eviction will require a court hearing.
That means it will almost certainly take longer in the future to remove a tenant and regain possession.
And if the correct legal eviction procedure isn’t followed, a judge can throw out the case and the whole process has to be started again from scratch.
If you have our Fully Managed service, we’ll handle your tenancy on your behalf. With robust systems and procedures in place to ensure everything is legally sound, you can be sure we’ll help you regain possession as quickly as possible and re-let the property.
To discuss how we can help ensure you remain compliant once the RRB passes, or if you have any questions about the upcoming changes, just get in touch with your local Your Move branch – we’re always here to help.
The Your Move Content Marketing Team
